PDZ.L Regulatory News (PDZ)

PRAIRIE MINING LIMITED

NEWS RELEASE | 2 JUNE 2016

PRAIRIE MINING RECEIVES STRONG SUPPORT FROM REGIONAL GOVERNMENT

HIGHLIGHTS:

· Significant government support shown to Prairie over its announcement of the final mine shaft location for the Jan Karski Mine of the Lublin Coal Project

· A conference was held to announce the mine-site location and was attended by the Australian Ambassador to Poland, the General Counsel from the Ministry of Development, the Vice Marshal of the Lublin Province, and numerous other distinguished guests

· The support comes amid a recent Government announcement to unlock the industrial potential of the Lublin Coal Basin, under the catchphrase "Coal 2.0", where the Ministry of Development outlined plans to support the development of modern installations for coal utilisation

Prairie Mining Limited ("Prairie" or "Company") recently held a conference in Lublin to announce the final site selection for the future Jan Karski Mine (also known as the Lublin Coal Project). During the conference, Prairie presented to local authorities, media and community the progress the Company has made in its Project permitting (refer announcement 25 May 2016), including substantial progress made in acquiring land access rights for the site.

The conference received wide coverage in both local and national media, including major newspapers and television, and was attended by senior both Polish and Australian officials including:

· Mr Paul Wojeciechowski, Australian Ambassador to Poland

· Mr Steve Rank, Head of Austrade in Poland

· Mr Krzysztof Grabczuk, Vice Marshal of Lublin Province

· Mrs Lucyna Jaremczuk, General Counsel, Department of International Co-operation, Ministry of Development

· Mr Tomasz Szczepaniak, Vice Governor of Chelm Shire/County

· Mr Tomasz Sonntag, Director of the Lubelskie Province Governor's Office

· as well as numerous other community leaders from municipalities around the Jan Karski mine location

Regional politicians confirmed their support for the Jan Karski Mine, which will be located in the Siedliszcze municipality in the Chelm Shire, and its potential to create a large number of jobs and bring significant economic benefits to the regional and national economy. In his speech, the Vice Marshal (regional Governor) of the Lublin Province, Mr Krzysztof Grabczuk, said:

"Today, we know that this investment will take Chelm Shire and the Lublin Province to a much higher level of economic development. It means to us thousands of new jobs…one of the reasons why Poland's economy has performed so well in recent years is that we imported new technologies through foreign investment. Ladies and gentlemen, let's hold on to this investment…I would like to thank local mayors and governors that support it. This investment is not something just for us as individuals, it will show the way and shape the future of the whole Lublin Province."

Mr Paul Wojeciechowski, Australian Ambassador to Poland, also gave his strong support for the Jan Karski Mine and noted that Prairie sets the model of cooperation between Poland and Australia:

"A long tradition of coal mining as well as deep understanding of this industry is one of many links between Poland and Australia. Therefore, one of our objectives is to enhance the economic growth of both countries through new investments and job creation in the mining industry. I see Prairie Mining as an excellent example of successful cooperation and an immense opportunity to share well-proven technological know-how between our countries. I am pleased to see how much Prairie Mining and their development of the Jan Karski Mine is welcomed by local communities and regional authorities. I see this as a mutually beneficial relationship in the future that we can continue to grow."

POLAND's NEW "RESPONSIBLE DEVELOPMENT PLAN": DEVELOPMENT OF THE LUBLIN COAL BASIN

Poland's Minister of Development and Deputy Prime Minister, Mr Mateusz Morawiecki, has announced 'The Responsible Development Plan', the so-called "Morawiecki Plan", which is an economic roadmap for Poland for the next 25 years. The Plan acknowledges the need for development in Eastern Poland. Specific solutions for the region are to:

· Unlock the industrial potential of the Lublin Coal Basin under a catch phrase Coal 2.0;

· Develop infrastructure, especially express motorways being part of international road routes and the Wilno-Białystok-Lublin-Rzeszów railway;

· Enhance clean coal technologies by building modern installations for coal utilisation in Lublin; and

· Establish companies with export potential, offering high quality jobs.

The Plan prioritizes the need to establish a long-term energy policy to avoid power shortages and improve the country's energy security while encompassing support for development of industries based on natural resources.

Prairie's CEO, Mr Ben Stoikovich commented: "We note that the Polish government is eager to support investments that enhance the raw materials independence of the country which contribute to its energy security. Each new investment, which is accompanied by the transfer of valuable know-how and implementation of globally proven mining technologies, is an important contribution to the long-term growth of an economy where energy security is paramount and where coal forms an integral part of its history and future needs. We believe that the development of Prairie's Jan Karski Mine will help unlock the potential of the Lublin Coal Basin and stimulate further economic development in the Lublin Province."

To see the announcement in full, including all figure please refer to Prairie's website at www.pdz.com.au

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